Where There Is a Significant Uncertainty with Respect to the Measurement

question 31

Multiple Choice

Where there is a significant uncertainty with respect to the measurement of an item,

• A)do not record anything in the financial statements.
• B)recognize the item in the financial statements and disclose the measurement uncertainty in the notes to the financial statements.
• C)do not record anything in the financial statements but disclose the measurement uncertainty in the notes to the financial statements.
• D)record the maximum amount in the financial statements.

---

Definitions:

Likelihood

The probability of a particular outcome given a set of parameters within a statistical model.

Binomial Variable

A type of discrete variable that can take one of two independent values, often representing success or failure in an experiment.

Woman

A female human adult.

Sampling Error

The difference between a sample statistic used to estimate a population parameter and the actual but unknown value of the parameter.